Altron to restructure, sell some units & bring global equity partner

By Staff Writer

Allied Electronics Corporation (Altron) will announce an independent management structure later this year, the struggling technology group said on Wednesday.

The company, which is also in a process of selling subscriber base of its struggling Altech Autopage, said it is also exploring strategic equity and technology partnerships with global industry players in other areas of the business.

Altron, which reported a 50% decline in headline earnings per share to 94 cents in the year to end-February,  has also identified certain material non-core assets have been identified for disposal.

“Altron’s board has undertaken a fundamental review of the group’s business strategy. As part of this process, it has been decided that the company will commence transitioning from a family managed business to an independent management structure. The board will make further announcements in this regard in due course,” the company said.

“This has resulted in the development of a plan to focus the group in certain areas where the board believes the group has the resources, competence and skills to leverage a competitive advantage.”

The company’s revenue dropped by 1% to R22.1 billion from R22.3 billion in the prior year, while EBITDA declined by 19% from R1.55 billion to R1.25 billion. The EBITDA margin was 5.7% compared to the prior year’s 7.0%.

The South African-based company, which is valued at more than R3.6bn, also reiterated that it is well advanced in terms of exploring alternative opportunities for this business, without providing additional information.

During the financial year, a decision was taken to dispose of Altech Autopage’s GSM subscriber bases and consequently this business has been classified as a discontinued operation.

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